In plain English
Total spend divided by clicks. It is the most quoted number in paid advertising and one of the least useful on its own.
A low cost per click usually means low-intent traffic. The queries that produce customers are expensive precisely because everyone wants them.
What to know
Spend over clicks
A simple average.
Set by auction
Competition and relevance both affect it.
Low is often bad
Cheap traffic rarely converts.
Judge with conversion
Cost per acquisition is the meaningful figure.
Why it matters
Reducing cost per click while conversions fall is a worse outcome than paying more for traffic that buys. The number to manage is cost per customer.
Common mistakes
×Setting a target cost per click.
×Broadening targeting to reduce it.
×Comparing it across channels with different intent.
×Reporting it without conversion data.
FAQs
What is a good CPC?
Whatever produces an acceptable cost per customer. There is no universal figure.
How do I reduce it?
Improve relevance. Broadening the audience lowers it and usually costs you more overall.
WRITTEN BY TARIQ SALLAM
Marketing Consultant. Entrepreneur. Content Creator.
I'm a marketing consultant, entrepreneur and content creator. I help businesses grow through practical marketing, websites, SEO, content and AI.
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